Pre-Market 8 June 2026: What To Expect After GIFT Nifty drops 350 Points

Indian markets return on Monday after a volatile RBI policy day and a sharp sell-off on Wall Street late Friday.

The Reserve Bank of India kept the repo rate unchanged at 5.25%, but revised its FY27 growth and inflation projections. The Sensex ended Friday down 117 points at 74,243, while the Nifty 50 closed 50 points lower at 23,367.

Why Did Markets End Lower After The RBI Policy?

The RBI left policy rates unchanged for a third straight meeting but struck a more cautious tone on the economy.

The central bank cut its FY27 GDP growth forecast to 6.6% from 6.9% and raised its inflation estimate to 5.1% from 4.6%.

Governor Sanjay Malhotra said the global backdrop remains uncertain due to the continuing conflict in West Asia and supply-chain disruptions.

At the same time, the RBI and the government announced several measures aimed at attracting foreign capital and supporting the rupee.

Among them:

• FPIs were exempted from capital gains tax on interest earned from government securities.

• RBI expanded the list of sovereign bonds available under the unrestricted foreign investment route.

Broader market action was mixed, while traders assessed whether the RBI's steps would translate into sustained foreign inflows over the coming weeks.

Global Markets

The biggest development after the Indian markets closed came from the United States.

Wall Street witnessed a sharp sell-off on Friday after stronger-than-expected employment data fuelled concerns that the US Federal Reserve may have to keep interest rates higher for longer.

The Nasdaq Composite fell more than 4%. The S&P 500 fell nearly 3%, while the Dow Jones Industrial Average lost around 1.4%.

Rising bond yields added to the pressure after the yield on the US two-year Treasury note climbed to a 15-month high.

Asian markets also ended in negative territory:

• Nikkei 225 declined 1.31% to 66,588.12.

• Hang Seng slipped 1.15% to 24,961.95.

European markets were mixed:

• FTSE 100 edged up 0.07% to 10,368.05.

• CAC 40 declined 0.32% to 8,218.24.

GIFT Nifty Update

GIFT Nifty traded at 23,091, down 356 points from its previous close. That comes after a weak finish for global equities on Friday.

Technical View

Market experts place immediate support around 23,300, while 23,500 is seen as the first resistance zone.

A sustained move above 23,500 may improve sentiment and open the door for a stronger recovery.

Also Read - Market Wrap, 5 June 2026: Sensex, Nifty Slip As RBI Holds Repo Rate Amid Global Uncertainty

What Should Investors Expect Today?

The RBI's policy decisions are likely to remain in focus on Monday.

Along with the unchanged repo rate, the central bank revised its FY27 forecasts and announced measures aimed at attracting overseas money into Indian markets.

Meanwhile, the mood across global markets turned weaker after Friday's sell-off in the US, while GIFT Nifty also moved sharply lower.

Sources:

Mint

Reuters

The Economic Times